TNAG-2253-FCO40-3237-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-gene-1991 — Page 51

CONFIDENTIAL

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TACKLE BOTH THE FINANCIAL AND FACE'' ASPECTS. THIS MEANS NOT ONLY CONVINCING THE CHINESE ABOUT THE FINANCIAL SOUNDNESS OF THE PROJECT, BUT ALSO CONVINCING THEM OF OUR SINCERITY IN THE CONSULTATIONS. IT IS FOR THE GOVERNOR TO ASSESS WHETHER THERE IS ANY LEEWAY IN THE TIMETABLE FOR THE PROJECT WHICH WOULD ALLOW A DELAY WHILE CONSULTATIONS CONTINUE, AND WHETHER THIS IS ACCEPTABLE IN HONG KONG TERMS. IT IS ALSO FOR HIM TO ASSESS WHETHER HKG CAN GO AHEAD WITH THE PROJECT WITHOUT CHINESE SUPPORT. HOWEVER, THE LATTER COURSE WOULD BE A DANGEROUS GAMBLE TO TAKE, AND WOULD RISK SERIOUS REPERCUSSIONS IN OTHER AREAS OF WORK ON

HONG KONG.

DONALD

YYYY

ΜΑΙΝ

74

.PADS

LIMITED

HKD

COMED

ERD

ECONOMIC ADVISERS

HD/FED

NEWS D

ADDITIONAL

1

MR YAXLEY HKGO LONDON

NNNN

DISTRIBUTION

75

PUSD

RAD

PS/LORD CAITHNESS

PS/MR LENNOX-BOYD

MR BAYNE

MR MCLAREN

MR MILES

MR BURNS

4

PAGE

CONFIDENTIAL